ESPN, Inc.: 2008 in Review

In 2008, ESPN enjoyed another exceptional year, driven by strategic acquisitions, major rights agreements and innovative new services.  In a year when multiplatform became a common buzzword in the industry, ESPN clearly demonstrated its unsurpassed leadership in presenting more content through more connections to more consumers around the globe.  The core domestic television business continued to thrive and set numerous ratings records.  Key growth areas – digital and international efforts – along with traditional TV and radio platforms, were bolstered with wide-ranging agreements:  new acquisitions, including the Bowl Championship Series (2011 – 2014), tennis’ US Open (2009 – 2014) and the 2009 World Baseball Classic – as well as renewals with expanded rights such as the SEC, golf’s Open Championship,Wimbledon, IndyCar and the WAC.

In theU.S., ESPN aggressively expanded its long-established digital sports leadership with a landmark extension of its agreement with Major League Baseball Advanced Media featuring increased rights.  In addition, video, community, fantasy games and mobile platforms were expanded to reach record numbers of fans in creative ways while a redesign of ESPN.com was readied for January 2009.

ESPN International continued to expand its presence across media, and was very active online, debuting ESPN360.com in Europe,MexicoandBrazil.  The acquisition of Racing-Live.com continued a string of strategic additions to ESPN’s core offerings.  ESPN Classic (in 110 countries) and NASN (62 countries) – soon to be rebranded ESPN America – are now seen in 24.5 and 14.5 million homes, up from 23 and 11 a year ago, respectively.

“ESPN continued to use the universal language of sports to serve fans, rightsholders, distributors and advertisers around the globe with the best portfolio of sports content, technology and leading platforms,” said George Bodenheimer, president, ESPN, Inc. and ABC Sports, and co-chairman, Disney Media Networks.

INTERNATIONAL 

 

CONTENT & TECHNOLOGY

Monday Night Football generated 13 of cable’s top 15 household audiences in 2008, topped by thePhiladelphia –Dallas game, cable’s biggest audience ever (12.95 million homes, 18.6 million viewers).

SportsCenter expanded in August with six live hours every weekday morning and grew its average monthly audience three percent to 100 million viewers.

NASCAR provided ESPN five of its biggest six household audiences ever for motorsports, including the top three.  In just three months (August 27 – November 18), 127 million people (45% of Americans) watched NASCAR on ABC, ESPN or ESPN2.

New highs for average audience were set for the NBA playoffs, the NCAA Women’s Basketball Tournament, NASCAR race (Brickyard 400), college football bowl season, regular-season college basketball game (Tennessee at Memphis, men’s), Major League Baseball’s Home Run Derby, the NBA playoffs and Draft Lottery, the College World Series, the X Games and Winter X Games and documentary (Black Magic, surpassed later in the year by The Greatest Game Ever Played).  ESPN also garnered the two biggest audiences in cable history for golf – the US Open Playoff and Friday’s telecast coverage of its inaugural Masters coverage.

NASCAR’s Nationwide Series broke the mark set in last year’s debut season as ESPN2’s highest-rated series, and posted its most-watched race (Feb. 16 – 2,430,000 homes).

ESPN2’s morning lineupMike & Mike at 6 a.m. followed by FirstTake at 10 a.m. increased its audience 18%.

Set records for average audience for college football season, IndyCar telecast; Wimbledon coverage; and non-World Cup soccer match (UEFA Euro 2008 semifinal,Russia vs.Spain).

SALES & MARKETING

OWNED EVENTS

TEAM ESPN

2008

Jan.       1       Motocross star Robbie Maddison breaks the world record for a motorcycle jump live from Las Vegas on New Year, No Limits: New Year’s on ESPN, jumping  322 feet, 7.5 inches (old record:  277 feet).  The telecast earned a 3.6 rating.

13        ESPNEWS registers its most-watched show ever.  The Blitz (8 – 8:30 p.m. ET) averages 327,000 homes after day’s NFL playoffs.

14        ESPN.com enters into an agreement with Major League Gaming (MLG), the leading professional video game league, to serve as a primary outlet for MLG news, plus exclusive streamed matches.

14        ESPN invests in NBA China, a new entity that will conduct all of the league’s businesses in Greater China.

24-27     Winter X Games 12 is the most-watched ever, up 17% from 2007.

26        ESPN and The Masters announce expanded digital coverage, supplementing 2008’s first-ever ESPN coverage with live streaming of all ESPN telecasts on ESPN360.com, extensive highlights and live coverage on ESPN.com and more.

27        ESPN is rated number one by cable operators in perceived value for the eighth year in a row in Beta Research Corp.’s survey, with a value higher than any network ever received.  ESPN2 ranked second for the third straight year.

March    3       ESPN Films is established, to present scripted and documentary film projects for TV and theatrical release, including “30/30,” a series of 30 films celebrating the last 30 years in sports, timed with ESPN’s 30th anniversary in 2009.

8       ESPN’s most-watched men’s college basketball game,North Carolina – Duke, with 3,830,000 households (based on a 4.0 rating).

24        HoopGurlz.com is acquired, the foremost web site focused on high school girls’ basketball and college women’s basketball on a national basis.

30        ESPNEWS HD debuts with a new look for the network, a new set, new graphics, animation and music.

31        ESPN2 and ESPNEWS conclude their most-viewed first quarter ever.  ESPN’s 24-hour audience is up 15%.

April       7       ESPN International announces the launch of NASN on the SKY Italia platform and syndication of ESPN programming on Sky Sport in Italy, the 40th country NASN reaches.  It is ESPN International’s largest HD syndication deal.

7       Dick Vitale is elected to the Naismith Basketball Hall of Fame.

8       ESPN.com will make short-form videos (highlights and segments from original programming) accessible directly through AOL Video and AOL Sports, the first time ESPN has syndicated video content through an Internet portal.

10-11  ESPN’s first Masters is a huge success on TV and online.  Friday’s second round is cable’s most-watched golf telecast (record broken June 16).

17        ESPN and Wimbledon announce a new six-year agreement with expanded rights for multimedia platforms, ESPN Deportes and ESPN International.

27        X Games Brazil concludes its first visit toSao Paulo where more than 44,000 fans attended the event, the first International X event aired in theU.S.

28        April concludes as the most-watch April for ESPN, ESPN2 and ESPNEWS.

28        ESPN Deportes becomes a nationally measured network by Nielsen.  The next day, the network draws a 3.8 rating for the UEFA Semifinal betweenBarcelona and Manchester United.

28        ESPN wins seven Sports Emmy Awards, including in all three “New Approaches” categories for online and broadband entries.

May        1       NASN debuts in Turkey, its 43rd country, and ESPN Classic launches inSouth Africa and 45 other nations inAfrica.

5       ESPN Australia HD debuts, ESPN’s first international HD service, with content produced specifically for the Australian sports fan.

12        ESPN and the USTA announce a six-year agreement for extensive TV and digital coverage of the US Open, giving ESPN all four of tennis’ Grand Slams.

15        ESPN RISE is announced as a multimedia high school sports content initiative to  grow ESPN’s 12- to 17-year-old audience, while providing compelling high school sports content across all platforms including tv, digital, publishing and events.

19        The NBA Draft Lottery is ESPN’s highest-rated and most-watched ever (2.1 rating, representing 2,010,000 households).

30        The NBA Playoffs conclude as ESPN’s most-watched (3,149,000), up 38% vs. 2007.  The 3.3 rating is a 41% increase (21 games in ’08, 17 last year).  During the playoffs, visits to ESPN.com’s NBA content was up 57%.

June      1       NASN and ESPN Classic launch on ART (Arab Radio & Television), reaching 19 countries in theMiddle East.

4       ESPN and Ballantine Books enter an agreement to publish 10-12 sports titles annually, ranging from celebrity titles to non-fiction to reference.

11        ESPN acquires Student Sports, Inc., a premier high school-focused digital media and event production company.  Core assets include StudentSports.com and DyeStat.com, and more than 160 events.

16        ESPN’s coverage of the first two hours of the 18-hole U.S. Open playoff between Rocco Mediate and Tiger Woods is cable’s most-watched golf telecast, an average of 4,055,000 homes, based on a 4.2 rating.  The day was also the most-viewed in ESPN Mobile TV history.

17        The six-game NBA Finals’ 9.3 rating is up 51% from the 6.2 for 2007’s four-game series.  ABC “won the night” all six nights and was the most-watched network for the week in the key adult demos.  Online traffic to ESPN.com’s NBA content nearly doubled from last year.

25        The College World Series ends as ESPN’s most-viewed ever, with household impressions up 27% over 2007

29        ESPN Deportes’ exclusive Spanish-language coverage of the Germany-Spain EURO 2008 Final drew the service’s largest audience to date – a 10.1 Hispanic household rating (357,000 households, 647,000 Hispanic viewers).

30        June was ESPN360.com’s biggest month ever, three million video streams and average time viewing exceeds three hours (5x industry average).  Boosted by the U.S. Open, Euro 2008, Asia Cup (cricket) andWimbledon, it posted the 10 most-watched events since re-launching as live-event network in September 2007.

July        9       ESPN The Magazine Mexico is announced and goes on sale as the only general monthly sports magazine in that country, produced in conjunction by ESPN and Grupo GW with locally relevant content.

14        The State Farm Home Run Derby – at Yankee Stadium in its final season – averages a 6.4 rating and 6,184,000 households, the most-viewed Derby ever as  ESPN wins the night – cable and broadcast – among viewers and key male and adult demos in the highest-rated and most-viewed ad-supported cable program in 2008 to date, up 29% vs. the 2007 Derby.

15        The ESPY Celebrity Golf Classic, a Team ESPN event inCalif., raised $1 million in net proceeds for The V Foundation for Cancer Research.  ESPN Radio’s “Don’t Give Up” ESPYs V Foundation Auction also raised $1 million.

16        The ESPYS, hosted by Justin Timberlake, enjoyed a 14% increase in audience, to an average of 2,245,000 homes for the June 20 telecast.

27        The NASCAR Sprint Cup Allstate 400 at the Brickyard averaged 4,889,000 households, the most ever for a motorsports event on ESPN.

31 – Aug. 3  ESPN’s X Games telecasts are the network’s most-watched ever, an average of 988,000 homes, while the games feature five new events and a record purse.

August  4       ESPN acquires Racing-Live.com, the leading independent motor racing website, showcasing Formula 1, Rally, Moto GP, Endurance and Kart racing.  It has over three million unique users a month, with content in English, French, Japanese, Italian, German and Spanish.

7       ABC, home to the Indianapolis 500 for 44 years, will continue to air the race through 2012, in an agreement that also includes four other IRL races annually.

11        SportsCenter debuts live weekday morning editions, 9 a.m. – 3 p.m. ET.

21        ESPN and Major League Baseball Advanced Media expand their agreement through 2013 with rights for ESPN.com, ESPN360.com, ESPN’s mobile initiatives, content on video game consoles, interactive television and portable devices with worldwide rights (except select Asian and Pacific Rim markets).

25        ESPN and the SEC announce a landmark 15-year deal incorporating cable and subscription TV, ESPN on ABC, ESPN Regional Television, ESPN360.com, ESPN Mobile TV, ESPN International and ESPN Deportes for more than 5,500 events (football, men’s and women’s basketball and Olympic sports).

26        ESPNRise.com launches as a news, information and community resource for high school athletes, representing the confluence of multiple acquisitions and initiatives by ESPN over the past 18 months.

28        ESPNU HD launches.

Sept.      3       ESPN and the Western Athletic Conference reach an agreement to extend their current contract for rights across multiple platforms an additional seven years through 2016-17.

15        Monday Night Football (Philadelphia at Dallas) draws cable’s biggest audience ever – 12,953,000 homes, based on a 13.3 rating.

25        In Orlando, Disney’s extensive sports complex is branded ESPN Wide World of Sports, with plans for added signage, technological enhancements and an expanded lineup of events.

Oct.        2       North American Sports Network (NASN) will become ESPN America, ESPN’s first branded live television channel inNorth Europe.

7       ESPN will present multimedia coverage of the World Baseball Classic in March 2009, including ESPN, ESPN HD, ESPN2, ESPN2 HD, ESPN Deportes, ESPN International, ESPNEWS, ESPNEWS HD, ESPN Radio, ESPN Deportes Radio, ESPN.com, ESPN360.com, ESPN Mobile Properties and more.

21        ESPN360.com launches inGreat Britain, with free news, highlights, analysis and interviews from the NHL, MLB, NFL, golf, tennis and X Games, along with subscription packages for live event programming.

Nov.       3       Disney, ESPN Media Networks and the NCTC, announce a comprehensive, multi-year agreement for distribution of a wide range of programming, networks and services – ESPNU, and the HD versions of ESPN2, ESPNEWS and ESPNU.

13        ESPN and The R&A, organizer of The Open Championship (The British Open), reach an eight-year agreement that places all four rounds live on ESPN beginning in 2010, plus broad digital rights, expanded TV and digital media rights for ESPN International, and extensive same-day weekend highlights on ABC.

18        ESPN and the Bowl Championship Series (BCS) announce exclusive TV, radio, digital, international and marketing rights for 15 games January 2011 –  January 2014 (Fiesta, Orange and Sugar Bowls each season and the BCS National Championship Game in 2011, 2012 and 2013).

Dec.       3       ESPN inks an eight-year agreement to cover the Women’s British Open beginning in 2010 live on ESPN, plus same-day Sunday encore coverage on ABC; broad digital rights and more.

20        The inaugural magicJack St. Petersburg Bowl, owned and operated by ESPN Regional Television, debuts. South Florida defeatsMemphis 41-14.

22        Monday Night Football closes its third season on ESPN once again as cable’s most-watched series, with 13 of the year’s 15 biggest cable household audiences, including an all-time record.

23        ESPN Interactive Television announces that in 2009 it will offer products to allow viewers to interact with the network via their remote control, to create customized data feeds and participate in on-screen voting and polling.

29        For the fourth quarter, ESPN, ESPN2, ESPN Classic, ESPNEWS & ESPN Deportes, combined to reach a record 220 million Americans – 76% of the population (92% of cable homes).  Including ESPN on ABC, the number rises to a record 250 million Americans – 86% of the population.

29        For the year, ESPN, ESPN2, ESPN Classic & ESPNEWS combined to average a record 1,139,000 homes (at any time, 24-hour basis).

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